Fixed Income investing at BlackRock

After decades of historically low yields, investors are now faced with heightened rate and macro volatility. Now is the time for investors to re-assess their fixed income allocations, with a focus on dynamic strategies that can take advantage of rising dispersion and enhance risk-adjusted returns.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Key Takeaways

01.

Stable income

Bonds can provide a predictable stream of income through regular coupon payments. Across various segments, from government to corporate debt, yields have become more attractive offering meaningful income potential.

02.

Capital preservation

Fixed income is often used to help preserve capital, especially in uncertain or volatile market environments. High-quality bonds tend to hold their value and may even benefit when interest rates decline.

03.

Diversification

Adding fixed income to a portfolio can help reduce overall volatility. Historically bonds have shown low correlation with equities providing balance during periods of market stress.

Risk: Diversification and asset allocation may not fully protect you from market risk.

Global Fixed Income Outlook

What’s next for markets? Our key investment managers and CIOs evaluate regional opportunities and share their insights on the main themes driving the market.

Learn More

Why BlackRock for fixed income?

BlackRock offers a comprehensive fixed income platform, managing assets across the entire fixed income spectrum – from public to private, fundamental & systematic, active & index – to help deliver better outcomes, convenience, value, and transparency for our clients.

Global expertise

Deep knowledge in asset classes, sectors and geographic markets enable us to help find relative value across fixed income assets and uncover hidden opportunities.

Differentiated sourcing

Strong counterparty connectivity and access to deal flow across private and public markets provides our clients access to high-quality fixed income opportunities.

Technology edge

Sophisticated investment and risk management platform enhances our processes to be more efficient at scale and help clients manage portfolio risks.

Flexibility & choice

Differentiated client solutions across budgets, vehicles and investment strategies to help clients more efficiently access markets and achieve their objectives.

Risk: While proprietary technology platforms may help manage risk, investment risk cannot be fully eliminated.

Fixed income investing solutions

BlackRock offers one of the largest and most diverse array of fixed income solutions, across our fundamental, systematic and credit platforms. Our Aladdin® platform, dedicated team and proprietary technology infrastructure enable bespoke client engagements and the delivery of solutions to institutions around the world.

BlackRock is a leader in fundamental fixed income. With a focus on alpha generation and risk management, the team uses top-down views from lead portfolio managers and bottoms-up expertise from our sector specialists to drive consistent alpha. The breadth and depth of our platform puts us in a strong position to deliver returns regardless of macroeconomic regime, volatility or interest rate environment.

With more than 2,400 iShares fixed income ETFs available globally, investors today have greater choice and flexibility than ever before. By investing in these solutions, you gain access to BlackRock’s deep fixed income expertise—helping you build stronger, more resilient portfolios.

Whether index-based or actively managed, iShares fixed income ETFs represent powerful investment technology, delivering transparency, access, liquidity, and efficiency to investors worldwide.

Transcript

I think we're in a pretty special period. I think this is the golden age of fixed income. Think about for years, for decades, we're at very low interest rates and credit quality was a question. Companies were at risk and you had volatility. Now we went through a very low interest rate period. Companies trimmed out their debt. Individuals trimmed out their debt. So the credit quality is as good as it's ever been. But because of service level inflation still being high. The fed is lagging in terms of bringing down interest rates. So today you're able to capture yields that you haven't seen in decades. I think five years from now, three years from now, two years from now, people are going to look back and say, wow, that was an attractive time. We got an awful lot of yield. Almost like equity, like returns or yield availability. And you're not taking the risk. That's a pretty, pretty good time to be in fixed income.

Key opportunity in bonds: income is back

Rick Rieder, Senior Managing Director, BlackRock’s Chief Investment Officer of Global Fixed Income and Head of the Global Allocation Investment Team, gives an update on why he thinks the greatest opportunity right now is income.

Meet our fixed income leadership team

Rick Rieder

CIO of Global Fixed Income – BlackRock

Tom Parker, CFA

Chief Investment Officer, Systematic Fixed Income

Alex Claringbull, CFA

Managing Director, Global Head of Indexed Fixed Income & LDI within the Portfolio Management Group (PMG)

James Turner

Head of Global Fixed Income in EMEA

Simon Blundell

Head of European Fundamental Fixed Income – BlackRock

Related insight

Global Fixed Income Outlook

What’s next for markets? Our key investment managers and CIOs evaluate regional opportunities and share their insights on the main themes driving the market.

Download the outlook

BlackRock

As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. Since 1999, we've been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals.